Gift package firms, florists avoid wrap-up in downturn

Gift package firms, florists avoid wrap-up in downturn

By Lila Fitri Aly

JAKARTA (JP): The government's liquidation of 16 banks also
kissed goodbye a bountiful source of revenue for one shocked gift
package company owner.

Fahira Idris, owner of Nabila Parcel in Pejaten, South
Jakarta, said all the closed banks were her clients.

"One bank would order some 200 packages on special occasions,"
she said.

Fahira knew she was only one of many gift package companies,
which started swelling in number here in the 1980s, vying to keep
customers and find new ones in the downturn.

She got over her panic and began to make plans. She conducted
an informal survey of 200 prospective clients, aiming to collect
an accurate picture of how they viewed the gifts and what she
could do to ensure orders did not dry up.

Particularly important was the response to whether gifts were
considered luxury expenditures.

"Surprisingly, what I understood (from the response) was
totally different," said Fahira, daughter of noted businessman
Fahmi Idris.

"In fact, companies consider gift packages primary items, not
a mere unavoidable social cost.

"They think sending gifts is one way to express their deepest
feelings of gratitude to customers."

They were a once-a-year opportunity, "a sacred moment to
maintain a good relationship".

She added: "It is too hard to sacrifice a good and long
relationship" even in an economic crisis."

Companies would not cut down cost of their gift sending, but
would be more selective about prices.

Fahira responded by cutting prices by up to 40 percent while
attempting to keep constant the number of items in her packages.

"Last year the highest price for my creation (package) was Rp
5 million, now it's only Rp 2 million," said Fahira, whose client
list has 1,000 individuals and corporates.

Suhaenah, a supervisor at Familia Young Studio in Pondok
Indah, said people usually ordered gift packages from her firm by
Dec. 10 at the latest, but this year was different.

"Dec. 20 is usually the peak of our activity ... we have a
long line here."

"But this year most people only started ordering on Dec. 20,"
said Suhaenah in the quiet store.

Sales have been halved, she added. "Today people are ... being
very selective."

Familia is not raising prices, she said, as they were set
several months ago, but is also unable to mark them down.

"But we can't reduce prices, they're as low as possible now,"
she added. Packages at Familia are priced up to Rp 600,000.

Florists have also been hard hit as businesses watch their
budgets.

Ohen Suharna of the Hortensia florist in the popular Kebayoran
Baru flower center of Barito checked on several of his clients
who had not made orders this year.

"This year we're only sending cards," was their response.

Ohen and his colleagues have reduced their purchase of flower
cuts, and some workers have been put on leave. He now has only
eight of his 11 permanent staff and several casual workers.

He fears business around the Idul Fitri holiday will be
similarly slow. Like the gift package business, florists are
usually run off their feet around Dec. 20.

"I wouldn't be giving an interview ... my phone would be
ringing every five minutes," Ohen said.

Last year, an average 30 flower arrangements were sold daily,
but "now we're only selling three", he added.

Sari Narulita, owner of the Flower World florist and an editor
at Kosmopolitan magazine, believes business has dropped by more
than 50 percent.

Imported flower seeds have increased in price by at least 30
percent.

"The flower nurseries have experienced the long and dry
season, plus the economic crisis," she said.

Nevertheless, everyone must try to be upbeat, and remember
friends in bad as well as good times.

"I still send customers fruit parcels," Ohen said.